In this final paper we are going to familiarize with the basic concepts of how the Sun's energy is transferred and how we can use that energy with solar collectors to produce usable heat or electricity to satisfy our basic needs. Solar energy and direct solar irradiation are some of the most important parameters when it comes to solar collectors, because it determines weather or not it's a good idea to install solar collectors on a certain area. Besides that, it determines the design of solar collectors and how to position them towards the Sun so we can collect the maximum amount of solar energy, which we can use to produce usable heat for either heating up tap water or generating electric power. To further understand how heat is transferred within two systems (between fluids or solids) we are going to introduce the concepts of conduction, convection and radiation. Those three terms are imporant to understand, and they determine the amount of heat loss between solid material and surrounding air. Key concepts also lie in understanding the terms like pressure, temperature and expansion so we can understand how to use fluid to transfer heat during temperature changes. After looking at basic concepts to understand the principles how solar collectors work, we are going to take a look into non-concentrating and concentrating solar collectors. Non-concentrating solar collectors are mostly used for heating tap water and air, while concentrating solar collectors are mostly used for generating electricity. Also, we are going to see how we can increase efficiency of solar collectors, and what are the characteristics of certain systems that use concentrating technology. Then, in next chapter all the elements that use solar collectors are described in detail. Their mutual connection is shown and working principles of each element. The most important thing is how to use all the elements with maximum efficiency to collect the highest amount of solar energy, convert it to heat and use it without having big heat losses. In the end we have implementation of solar collectos on a private home with detailed information on how to install and maintain different parts of home solar system. We are going to introduce the basic material needed to make solar collectors and explain are they used. Also we are going to show a simple way to calculate the size of solar collector needed to provide hot water for a family of four, consisting of two adults and two childern.